Potash One Inc.

Potash One Inc.

December 01, 2008 09:01 ET

Potash One's First Resource Confirmation Well Intersects a Total of 39.6 Meters of Potash Mineralization With an Average Grade of 18.3% K2O

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 1, 2008) - Potash One Inc. (the "Company" or "Potash One") (TSX:KCL) is pleased to announce that the company's first resource confirmation well of the 100% owned 97,240 acre Potash One Legacy Project, 'South-1', has intersected a total of 39.6 meters of potash mineralization with an average grade of 18.3% K2O. The potash intersection consists of three distinct potash mineralization zones. Geological correlation of the potash zones to Prairie Evaporite geological members is currently ongoing. All depths presented herein are from a vertical hole and as drilled. The following tables summarize select geostatistics of South-1.

Table 1: Thickness and weighted average grade of each zone including all
assay intervals within the zone.

Depth Depth Thickness K2O MgO Insolubles
Potash Zone Number From (m) To (m) (m) (%) (%) (%)
Potash Zone #1 1514.6 1532.8 18.3 20.0 0.1 10.3
Potash Zone #2 1536.4 1544.2 7.8 19.2 0.1 4.1
Potash Zone #3 1554.5 1568.0 13.5 15.6 0.0 2.5
Total 39.6 18.3 0.1 6.4

Table 2: Thickness and weighted average grade including inter-bedded salt

Depth Depth Thickness K2O MgO Insolubles
Potash Zone From (m) To (m) (m) (%) (%) (%)
Top of Potash Zone
#1 through base of 1514.6 1544.2 29.6 17.8 0.1 7.9
Potash Zone #2
Top of Potash Zone
#1 through base of 1514.6 1568.0 53.4 14.1 0.1 5.3
Potash Zone #3

The dual well solution mining method currently being planned by Potash One will allow the solution mining of one, two or all three mineralized potash zones from a single solution mining cavern. Solution mining technology has the direct benefits of scalable production capacity, lower capital cost, shorter timeline to production and significantly less mining risk as compared to conventional potash operations.

Paul F. Matysek, President and Chief Executive Officer of Potash One, said, "I am very encouraged by the exceptional results of our first hole. South-1 represents on average a 27% improvement in the weighted average grade and thickness of the potash mineralization as compared to the historic drill holes that formed the previously reported NI 43-101 resource estimate on the Legacy Project. Furthermore, the relatively deeper potash mineralization provides us with the economic benefit of a higher formation temperature and thus lower energy costs. These are the very characteristics we were hoping to validate and provides us with a positive catalyst for our solution mine development."

South-1 was cored from 1493m to 1673m to obtain a complete geological record of the Prairie Evaporite on the KP-289 potash lease. Under the direction of Debbie Shewfelt, M.Sc., P.Geo., North Rim Exploration Ltd., the core was packaged, shipped, cut, logged, and sample intervals were prepared.

In the mineralized potash zones, the 4 inch South-1 cores were first cut in half, then one of the core halves was quartered, sampled and assayed in order to understand the random variance of the percent K2O between quarter core samples. The average assay interval for South-1 core was 0.26 meters. A total of 480 assays were completed over 78 meters of core.

The prepared samples were then forwarded to the Geoanalytical Laboratories at the Saskatchewan Research Council (SRC) in Saskatoon, Saskatchewan where they were crushed, split, and analyzed using SRC's basic potash package. Quality assurance and quality control measures were strictly adhered to, including the use of standards, blanks and repeats throughout the analyses. SRC is ISO accredited to 17025.

At present, Potash One has drilled over 4500 meters and completed three resource confirmation drill holes: South-1, South-2, and South-3. Core samples for South-2 are currently being assayed while South-3 core is being prepared for analysis.

Based on the assay results from South-1 as well as wireline log information from drill holes South-2 and South-3, Potash One has chosen to concentrate its resource confirmation drilling on the South Target Area of the KP-289 lease. By focusing on just the south area of the lease, the resource confirmation drilling originally envisaged to be between 9 and 12 drill holes may be reduced to between 6 and 10 drill holes, potentially generating significant savings. Resource confirmation drilling is scheduled to continue into early 2009 and has been designed to fully support a solution mining pre-feasibility study targeted for completion in the spring of 2009.

The assay results and this news release have been reviewed by Dr. Michael Hardy, P.E., Agapito and Associates Inc., and Steve Halabura, P.Geo., North Rim Exploration Limited. Both individuals are Qualified Persons under NI 43-101.

The technical content in this news release has been read and approved by Debbie Shewfelt, M.Sc., P.Geo., a consultant to Potash One and a professional geologist registered in the province of Saskatchewan and a Qualified Person as defined by NI 43-101.


Paul F. Matysek, M.Sc., P.Geo., President and Chief Executive Officer

About Potash One Inc.:

Potash One Inc. is a TSX listed Canadian resource company engaged in the exploration and development of advanced potash properties amenable to solution mining. The Company owns 100% of more than 330,000 acres of contiguous Potash Subsurface Exploration Permits in Saskatchewan, Canada. It includes the 97,240 acre Legacy Project which has a NI 43-101 compliant Inferred Mineral Resource of 391.5 million tonnes of K2O and an Indicated Mineral Resource of 40.8 million tonnes of K2O and is adjacent to the largest producing solution potash mine in the world.

Contact Information

  • Potash One Inc.
    Paul F. Matysek, M.Sc., P.Geo.
    President and Chief Executive Officer
    (604) 331-4431
    (604) 408-4799 (FAX)
    Email: info@potash1.com
    Website: www.potash1.com